The European Banking Authority (EBA) published its revised Guidelines on internal governance for investment firms under the Investment Firms Directive (IFD).
The guidelines provide details on how the IFD governance provisions should be applied by Class 2 investment firms by setting out the roles, responsibilities, and organization of the management body, as well as the organization of investment firms, including the establishment of transparent structures to enable oversight of all their activities.
The guidelines also include requirements aimed at ensuring the maintenance of risk management across all three lines of defense and, in particular, describe detailed requirements for the second line of defense (the compliance function and independent risk management) and the internal audit function (the third line of defense).
More information and the guidelines can be found here.